Leasing a car has distinct advantages over buying. Ask anyone who’s leased instead of bought: There’s a huge difference in the amount of money you’ll put into it. This is perhaps the best reason of all to lease. It’s a financial decision that gives you more time to save for that glorious day when you finally do buy a new or used car. In the long run, you’ll be able to save up for a much nicer car in the future, all the while driving a nice car a reasonable amount of miles.
Just like every big financial decision, it’s wise to know as much as you can about leasing before you dive into it. The more thought you put into the decision, the more satisfied you’ll be with it over the years.
Things to remember when you lease
You need to have good credit
Many people don’t know this, but when you lease a car you need to have a higher qualifying credit score. Leasing is truly a luxury. Dealerships make sure that good credit is in the profile of every leaser. There are a number of reasons for this but first and foremost is that you are being trusted with a very nice automobile for only a short period of years. They need to know that you’re the kind of person who will live up to your agreement and treat the car with care.
You won’t own the car at the end of a lease
The word “lease” confuses people at first. There might be the idea that you’re renting to own when in fact you’re not. You are simply making low monthly payments on a car that you will eventually return to the dealership.
You need to drive sparingly
For most people, 15,000 miles is plenty enough to get their daily chores taken care of and still have some travel miles left over to put on the car. Set miles are a big part of leasing. You’ll be expected to drive under a certain number of miles. If you forget this, you can rack up fees for going over mileage. The great news and biggest benefit of this is that you’re going to save a significant amount of money on gas over the course of your lease.
You need to take good care of the car
Normal wear and tear will be assessed in the final disposition fee, which is paid at the end of the lease. It’s usually between $300 and $500. This will cover the cost of cleaning the car, making any repairs after the normal wear and tear a driver puts on the car, and more. Make sure that you’re a very clean driver. When you return the car, it needs to be in good shape and not have damages done to it.
Ready to lease a car?
If you think you’re a good candidate for leasing, then you’re about to experience a true luxury in the auto world. When you lease, you get to drive a sleek, beautiful car that might not have been affordable when buying was the only option on the table. When you lease the same car, you get all the same advantages while you’re driving it. You get the great safety features, beautiful interior and exterior, and any amenities, such as built in Internet features, GPS, and radar.
Before you lease, keep a few key phrases in mind. You need to know the money factor before you lease. This will be calculated to determine your monthly payments. The price of the car will also impact the monthly payments. A very expensive car will have higher monthly payments. Always keep in mind that you’re not going to own the car as a result of the lease agreement. You’ll simply enjoy all of its benefits during the period of lease and then return it to the dealership, free to either buy or look for another car to lease.
The shorter term commitment is excellent for leasers because it allows you to drive a very nice car for very little money over a few years. During this time, you can set aside money to buy a car. One of the greatest advantages of leasing is the limited commitment you make. It truly frees up many more options on buying a car in the future because you’re going to be able to buy a nicer car with the money you save.
Some folks prefer to continue leasing, especially businesses which can get a large number of tax breaks through leasing their business vehicles. Individuals can also get tax perks for leasing, so before you go out and buy that car you’ve got your eye on, see if you might want to lease it instead.